Mexico's Pemex expects to significantly increase refinery runs in 2023

Mexico's Pemex is expecting to significantly increase its refinery runs in 2023 as it continues to rehabilitate its refineries, management said Feb. 27.

In 2022, Pemex refined on average 816,000 b/d of crude at its six refineries, a 15% increase compared with the 712,000 b/d refined in 2021, Reynaldo Wences, head of the refining business line, said during the company's earnings call.

In January, runs went up to 836,000 b/d and to 850,000 b/d in February, Wences said. "By the end of 2023, runs are expected to increase to around 1 million b/d," he said.

The company is conducting a rehabilitation program for its six refineries, which includes upgrading its storage facilities, he said.

It is also building a couple of coking plants and a seventh refinery in the port of Dos Bocas, which, in turn, will allow it to reduce its dependency on imports, management said.

In 2022, Pemex produced 271,000 b/d of gasoline, and 146,400 b/d of diesel, while demand was 670,000 b/d of gasoline and 304,200 b/d of diesel. The difference is covered with imports, mainly from the US.

Gas output soars

Production of natural gas at Pemex fields has been increasing in recent months as the company focuses on key wells, like Quesqui, Ixachi, and Koban, and reduces flaring and waste, management said.

In 2022, Pemex produced on average 4.8 Bcf/d of gas, compared with 4.74 Bcf/d in 2022, management said.

In January, the output was already 4.98 Bcf/d, the National Hydrocarbons Commission data showed. This increase has also been reflected in the production of condensates, which climbed to 285,843 b/d in January, compared with 179,925 b/d in January 2022, CNH data shows. Crude output was slightly higher in 2022 at 1.764 million b/d of crude, 28,000 b/d above 2021, management said.

More accidents

Pemex also informed that during 2022, the number and severity of the accidents it suffered at its operations increased.

Accidents caused the company to lose 29 days for every million man-hours worked, compared with only 20 in 2021, the company said.

Pemex reported three fires Feb. 23 at three different facilities, including its newly acquired Deer Park refinery in the US.